Navigating International Waters - Finance - Credit

Navigating International Waters: Keys to Success in Selling Overseas Market Advisory Series February 1, 2007

Today’s Speaker ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

PNC – A Diversified Financial Services Company ,[object Object]

Reality #1: GDP dependent on US Trade ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],vs. 2015 projections for US: $5 trillion or 29% of GDP

Reality #2: U.S. Exports are Large and Growing ,[object Object],[object Object],Source: World Trade Organization.

Reality #2: U.S. Exports are Large and Growing ,[object Object],Source: US Department of Commerce

Reality #3: World Exports are growing faster… ,[object Object],[object Object],Source: World Trade Organization.

Reality #4: Today, only few U.S. companies take advantage of exporting opportunities… ,[object Object],Source: U.S. Department of Commerce, Bureau of the Census.

…the opportunity for success is great! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Local Competition in the U.S. Opportunity for U.S. companies

Degree of Globalization Purely domestic Limited foreign sales and/or inclusion of foreign suppliers Robust foreign sales and/or inclusion of foreign suppliers Foreign sales office(s), expanded global supply chain Foreign management office(s) Foreign operation(s)      

Polling Question: Where are you? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Degree of Globalization—international banking needs Financing, Treasury Mgmt, Capital Markets +Letters of credit & other trade services, foreign exchange trades, international wire transfers, export working capital + Automated management of trade services, FX risk mgmt/ hedging, Canadian lockbox, buyer financing + In-country account services, global financial/ position information management, local collections + Global liquidity management tools, pooling/ netting services, centralized management of local small-value payments + Full array of global cash management, multinational financing       Purely domestic Limited foreign sales and/or inclusion of foreign suppliers Robust foreign sales and/or inclusion of foreign suppliers Foreign sales office(s), expanded global supply chain Foreign management office(s) Foreign operation(s)

6 Winning Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],     

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Know Your Buyer  Understand and evaluate your buyer’s objectives: Sales Agreement

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Know Your Buyer  Cost Benefit Analysis—make sure you get paid!

Know Your Buyer Ex-Im Bank Financing is an attractive option if over $250,000 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Increasing Risk  Hedge risk with appropriate instruments

Investigate the market Source: US Department of Commerce 

Investigate the market Payments Geo-Political Regulatory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Europe 

Investigate the market Payments Geo-Political Regulatory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Asia 

Investigate the market Payments Geo-Political Regulatory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Latin America 

Investigate the market Payments Geo-Political Regulatory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Canada 

[object Object],[object Object],[object Object],Introduce Buyer Financing $1,000,000 – 5 yr. Loan to Thar’s Turkish buyer Eximbank Guaranteed Medium Term Program offered through ,[object Object],[object Object],[object Object],[object Object],[object Object],

Price in your buyer’s currency and hedge your risk ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object], FX risk reward analysis

[object Object],[object Object],[object Object],Aquatech $25,000,000 Exim Bank Guaranteed Working Capital Line Seek export working capital ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],

Do your homework—work with specialists ,[object Object],[object Object],[object Object],

Developing your own growth strategy Who can help?

Who can help? Start with your bank ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Typical Letter of Credit Goods Ship. Doc. Goods Pres. Docs. Pay. Docs. Pay. Claim Pay. Pay. Pay. L/C L/C Reimb. Auth. L/C Appl. Sales Agreement Importer Exporter Issuing Bank Reimbursing Bank Advising/ Confirming Bank Carrier Carrier Ship. Doc. Goods Docs.

Who can help?--US Commercial Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Who can help? Other ,[object Object],[object Object],[object Object],[object Object]

Recap of Winning Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],     

Questions? ,[object Object],[object Object]

The PNC Middle Market Advisory Series PNC is the premier provider of financial services to middle market companies. We appreciate your participation. Thank you for attending! ,[object Object],[object Object],[object Object],[object Object]

Navigating International Waters - Finance - Credit

Navigating International Waters - Finance - Credit

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